Finning International Inc. · TSX:FTT
Finning International — Q2 2022 Earnings Presentation
12 slides from Finning International's earnings presentation, Aug 3, 2022
Slide 1: Q2 2022 Results
Q2 2022 Results Scott Thomson Kevin Parkes Greg Palaschuk President and CEO EVP and COO EVP and CFO August 3, 2022 See slides 10 and 11 for important information on forward-looking information, currency, and specified financial measures, including non- GAAP financial measures
Slide 2: Consistent Execution of Strategic Plan with Sustainable Improvements
Consistent Execution of Strategic Plan with Sustainable Improvements Drive Product Support Reduce Costs Reinvest to Compound Strong product support growth rates Productivity gains drive operating leverage Significant earnings and ROIC expansion Improved customer value Operating model efficiencies
Slide 3: Strong Execution Demonstrates Improved Earnings Capacity
Strong Execution Demonstrates Improved Earnings Capacity Targets Results Performance Highlights Q3 2021 – Q2 2022 Q3 2021 – Q2 2022 Achieved target as product support Net Revenue (1)(2) ($B) $7.1 - $7.5 $7.3 outperformance was offset by constrained availability of new equipment Significant outperfor
Slide 4: Q2 2022 Results
Q2 2022 Results vs Q2 2021 Q2 2022 Summary Net Revenue Strong market conditions, backlog deliveries, and successful execution of our $2.0B 18 % product support growth strategy Strong operating leverage through productivity gains across people, facilities, and supply chain, as well as inflation m
Slide 5: Q2 2022 Net Revenue
Q2 2022 Net Revenue Net Revenue by Line of Business Equipment Backlog (1) $ Millions 148 8 2,004 $ Millions 2,055 2,135 140 16 1,860 (13) 1,365 1,705 Q2 2021 Q4 2021 Q1 2022 Q2 2022 Mining Order Intake $1,000 Power Systems 17% 110 % Q2 2021 New Used Rental Product Fuel and Q2 2022 Equipment Equipmen
Slide 6: Q2 2022 EBITDA
Q2 2022 EBITDA EBITDA Q2 2022 EBITDA Drivers $ Millions Increase in gross profit was in line with net revenue growth 80 (24) 271 Increase in SG&A from additional workforce and higher variable costs to support revenue growth was partly offset by LTIP recovery and lower facility expenses 215 Man
Slide 7: Q2 2022 Results – Canada
Q2 2022 Results – Canada Net Revenue EBITDA Return on Invested Capital $ Millions $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 14.7% 14.7% 20.0% 17.4% 1,013 14.3% 16.9% 20.0% 200 879 884 149 10.0% 15.0% 14.0% 150 129 127 0.0% 100 10.0% -10.0% 50 -20.0% 5.0% 0 -30.0% 0.0% Q2 2021 Q1 20
Slide 8: Q2 2022 Results – South America
Q2 2022 Results – South America Net Revenue EBITDA Return on Invested Capital $ Millions $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 700 637 15.4% 22.3% 13.7% 13.7% 20.0% 20.3% 571 120 600 512 88 87 10.0% 17.2% 500 90 71 0.0% 400 60 -10.0% 300 30 -20.0% 200 0 -30.0% Q2 2021 Q1 2022 Q
Slide 9: Q2 2022 Results – UK & Ireland
Q2 2022 Results – UK & Ireland Net Revenue EBITDA Return on Invested Capital $ Millions $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 8.5% 8.7% 9.3% 18.0% 16.2% 354 14.8% 10.0% 314 40 281 33 5.0% 12.9% 30 27 12.0% 0.0% 24 -5.0% -10.0% 20 6.0% -15.0% -20.0% 10 -25.0% 0 0.0% -30.0% Q2 20
Slide 10: Disclosures
Disclosures Forward-looking information This presentation includes “forward-looking information” (as defined in applicable Canadian securities legislation) that is based on expectations, estimates and projections that we believe are reasonable as of the date of this presentation, but may ultimately
Slide 11: Disclosures
Disclosures Currency Monetary amounts referred to in this presentation are in Canadian dollars unless noted otherwise. All variances and ratios in this presentation are based on the functional currency of each operation (Canada: CAD, South America: USD, UK & Ireland: GBP). These variances and ratios
Slide 12: 2022 Earnings Schedule
2022 Earnings Schedule All dates and times are preliminary and subject to change Release Date Investor Call Time Quarter Investor Call Date after market close Eastern Q3 2022 November 7, 2022 November 8, 2022 10:00 AM Q4 2022 February 6, 2023 February 7, 2023 10:00 AM 12
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